-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, TyIJMY6YlhF+EauzO4LhPh82ZC1WNtIjR+UDeoX1OgeV/kRm0w3+cH6iLcqBpjHb T3j0jySrSoSVg/6oXUKdbA== 0001193125-07-136524.txt : 20070615 0001193125-07-136524.hdr.sgml : 20070615 20070615115745 ACCESSION NUMBER: 0001193125-07-136524 CONFORMED SUBMISSION TYPE: 11-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20061231 FILED AS OF DATE: 20070615 DATE AS OF CHANGE: 20070615 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ZOLL MEDICAL CORP CENTRAL INDEX KEY: 0000887568 STANDARD INDUSTRIAL CLASSIFICATION: ELECTROMEDICAL & ELECTROTHERAPEUTIC APPARATUS [3845] IRS NUMBER: 042711626 STATE OF INCORPORATION: MA FISCAL YEAR END: 1001 FILING VALUES: FORM TYPE: 11-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-20225 FILM NUMBER: 07922010 BUSINESS ADDRESS: STREET 1: 269 MILL ROAD CITY: CHELMSFORD STATE: MA ZIP: 01824-4105 BUSINESS PHONE: 9784219655 MAIL ADDRESS: STREET 1: 269 MILL ROAD CITY: CHELMSFORD STATE: MA ZIP: 01824-4105 FORMER COMPANY: FORMER CONFORMED NAME: ZOLL MEDICAL CORPORATION DATE OF NAME CHANGE: 19930328 11-K 1 d11k.htm FORM 11-K FORM 11-K
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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 


FORM 11-K

FOR ANNUAL REPORTS OF EMPLOYEE STOCK

REPURCHASE SAVINGS AND SIMILAR PLANS

PURSUANT TO SECTION 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

 

þ Annual Report pursuant to Section 15(d) of the Securities Exchange Act of 1934 for the fiscal year ended December 31, 2006

 

¨ Transition Report pursuant to Section 15(d) of the Securities Exchange Act of 1934

Commission File Number: 0-20225

ZOLL Medical Corporation Employee Savings Plan

ZOLL Medical Corporation

269 Mill Road

Chelmsford, Massachusetts 01824-4105

 



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REQUIRED INFORMATION ATTACHED

 

1. Audited statements of financial condition in accordance with the financial reporting requirements of ERISA.

 

2. Audited statements of income and changes in plan equity in accordance with the financial reporting requirements of ERISA.

 

3. Written consent of the accountant.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Plan Administrator has duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized.

ZOLL MEDICAL CORPORATION EMPLOYEE SAVINGS PLAN

 

By:   ZOLL Medical Corporation
By:   /s/ John Bergeron
Name:   John Bergeron
Title:   Vice President and Treasurer

Date: June 15, 2007


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ZOLL MEDICAL CORPORATION EMPLOYEE

SAVINGS PLAN

FINANCIAL STATEMENTS

DECEMBER 31, 2006 AND 2005


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TABLE OF CONTENTS

 

Report of Independent Registered Public Accounting Firm

   Page 1

Statements of Net Assets Available for Plan Benefits

   Page 2

Statement of Changes in Net Assets Available for Plan Benefits

   Page 3

Notes to Financial Statements

   Page 4-8

Schedule H, Line 4i Supplemental Schedule of Assets Held for Investment Purposes at End of Year

   Page 9

Consent of Independent Registered Public Accounting Firm

   Page 10


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LOGO

To the Plan Administrator

ZOLL Medical Corporation Employee Savings Plan

269 Mill Road

Chelmsford, Massachusetts 01824

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We have audited the accompanying statements of net assets available for plan benefits of ZOLL Medical Corporation Employee Savings Plan as of December 31, 2006 and 2005, and the related statement of changes in net assets available for plan benefits for the year ended December 31, 2006. These financial statements are the responsibility of the Plan’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform our audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Plan is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. An audit includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Plan’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for plan benefits of ZOLL Medical Corporation Employee Savings Plan as of December 31, 2006 and 2005, and the changes in its net assets available for plan benefits for the year ended December 31, 2006, in conformity with accounting principles generally accepted in the United States of America.

Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental schedule of assets held for investment purposes as of December 31, 2006, is presented for the purpose of additional analysis and is not a required part of the basic financial statements but is supplementary information required by the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. The supplemental information is the responsibility of the Plan’s management. The supplemental information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

/s/ Moody, Famiglietti & Andronico, LLP

Moody, Famiglietti & Andronico, LLP

Tewksbury, Massachusetts

June 13, 2007

 

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Statements of Net Assets Available for Plan Benefits   ZOLL Medical Corporation Employee Savings Plan

 

December 31

   2006    2005

Assets

     

Investments (Note 7):

     

Investments at Fair Value

   $ 25,470,076    $ 19,408,772

ZOLL Medical Corporation Common Stock

     1,477,840      825,098

Loans to Participants

     622,297      475,756
             

Total Investments

     27,570,213      20,709,626
             

Contributions Receivable:

     

Plan Sponsors’ Contributions Receivable

     859,074      510,911

Participants’ Contributions Receivable

     176,315      153,081
             

Total Contributions Receivable

     1,035,389      663,992
             

Total Assets

     28,605,602      21,373,618
             

Liabilities

     

Excess Contributions Payable (Note 3)

     —        76,228
             

Net Assets Available for Plan Benefits

   $ 28,605,602    $ 21,297,390
             

The accompanying notes are an integral part of these financial statements.

 

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Statement of Changes in Net Assets  
Available for Plan Benefits   ZOLL Medical Corporation Employee Savings Plan

 

For the Year Ended December 31

   2006

Additions to Net Assets:

  

Participant Contributions

   $ 4,479,706

Net Appreciation in Fair Value of Investments (Note 7)

     3,140,246

Plan Sponsors’ Contributions

     868,394

Interest and Dividend Income

     123,503
      

Total Additions

     8,611,849
      

Deductions from Net Assets:

  

Distributions to Participants

     1,295,582

Administrative Fees

     8,055
      

Total Deductions

     1,303,637
      

Net Increase in Net Assets Available for Plan Benefits

     7,308,212
      

Net Assets Available for Plan Benefits, Beginning of Year

     21,297,390
      

Net Assets Available for Plan Benefits, End of Year

   $ 28,605,602
      

The accompanying notes are an integral part of these financial statements.

 

3


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Notes to Financial Statements   ZOLL Medical Corporation Employee Savings Plan

 

1. Description of the Plan:

The following description of ZOLL Medical Corporation Employee Savings Plan (the “Plan”) provides only general information. Participants should refer to the Plan agreement for more complete information regarding the terms of the Plan.

General: The Plan is a defined contribution plan covering all employees of ZOLL Medical Corporation and its wholly-owned subsidiaries Bio-Detek, Inc., ZOLL Circulation, Inc. and ZOLL Lifecor Corporation (collectively referred to as the “Plan Sponsors”). The Plan, as amended, was established on January 1, 1992 to provide a systematic savings plan and retirement benefits for eligible employees (the “Participants”). Employees become eligible for participation in the Plan upon attaining age 21 and completing three months of service with the Plan Sponsors. The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974 (ERISA).

The Plan Sponsors have appointed an investment trustee, Fidelity Management and Trust Company (“Fidelity”), to hold the Plan’s assets and to administer the Participant accounts.

Contributions: Participants may contribute up to 60% of their pre-tax compensation, as defined in the Plan, subject to limitations under federal law. Rollover contributions from other qualified plans are allowed.

Effective September 1, 2006, the Plan adopted a qualified Roth contribution program. Under the program, Participants may irrevocably elect to treat all or a portion of compensation that would otherwise be eligible to defer as pretax contributions as designated Roth contributions as defined in Section 402A(c) (1) of the Internal Revenue Code.

During the year ended December 31, 2006, the Plan Sponsors elected to increase their discretionary matching contribution from 25% to 33% of each Participant’s elective deferral up to 7% of Participant wages. During the year ended December 31, 2006, the Plan Sponsors made contributions to the Plan in the amount of $868,394.

Participant Accounts: Each Participant’s account is credited with the Participant’s contribution and allocations of (a) the Plan Sponsors’ contribution and (b) Plan earnings. Allocations are based on Participant earnings or account balances, as defined. The benefit to which a Participant is entitled is the benefit that can be provided from the Participant’s vested account.

Vesting: Participants are immediately vested 100% in their contributions plus actual earnings thereon. Vesting in the Plan Sponsors’ contribution portion of their account plus actual earnings thereon is based on years of continuous service. A Participant becomes fully vested after four and six consecutive years of service, depending on their hire date, as defined in the Plan agreement.

Participant Loans: Participants may borrow from their plan accounts in amounts attributable to the Participant’s contributions, for a maximum term of five years. If the loan is for the purchase of a principal residence, the term of the loan may be extended to ten years. A Participant may borrow a minimum of $1,000 and a maximum of 50% of his or her eligible balance up to $50,000, reduced by the highest outstanding loan amount during the immediately preceding twelve-month period. The loan balance is secured by the Participant’s vested interest in their account and the interest rate is fixed at the inception of the loan in an amount equal to the prevailing interest rate charged by commercial lending institutions for loans of a similar nature. The interest rates charged on loans outstanding as of December 31, 2006 range from 5.0% to 9.25%, per annum.

Benefits and Withdrawals: Upon termination of service due to death, disability or retirement, a Participant may elect to receive either a lump-sum amount equal to the value of the Participant’s vested interest in his or her account, or annual installments. If the Participant has $1,000 or more in their account, he or she may elect to maintain the account after separation from the Plan Sponsor.

 

4


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Notes to Financial Statements   ZOLL Medical Corporation Employee Savings Plan

Hardship withdrawals are allowed under the provisions of the Plan and cannot exceed the amount required to meet the immediate financial need created by the hardship. The Participant will be suspended from making contributions for six months after the hardship withdrawal.

Forfeited Accounts: Forfeited amounts are used to reduce future Plan Sponsors’ contributions. As of December 31, 2006 and 2005, the Plan had forfeitures of $36,046 and $58,416, respectively, available to offset future Plan Sponsors’ contributions. The Plan Sponsors’ contribution for 2006 was reduced by $36,000 from forfeited non-vested accounts.

Plan Investments: The Plan’s investments are held in various mutual funds held by Fidelity, as well as in ZOLL Medical Corporation Common Stock. Participants have the option to allocate their contributions, and the Plan Sponsors’ contributions, in their individual accounts among various investment alternatives and to make transfers as specified in the Plan document.

 

2. Significant Accounting Policies:

Basis of Accounting: The financial statements of the Plan are prepared under the accrual method of accounting in accordance with accounting principles generally accepted in the United States of America.

Investment Valuation and Income Recognition: Investments are valued at their fair market value using quoted market prices. Purchases and sales of securities are reflected on a trade date basis. Participant loans are valued at their outstanding balances, which approximate fair value. Interest and dividend income is recorded as earned. The net appreciation in the fair value of the Plan’s investments consists of realized gains (losses) and unrealized appreciation (depreciation) on those investments.

The Plan provides for investment in various mutual funds and other investment securities that, in general, are exposed to various risks, such as interest rate, credit, and overall market volatility. Further, due to the level of risk associated with certain investment securities, it is reasonably possible that changes in the values of investment securities will occur in the near term and such changes could materially affect the amounts reported in the accompanying financial statements.

Contributions: Contributions from the Plan Sponsors are accrued as of December 31, 2006 and 2005, based upon the contribution formula. Participant contributions are recorded in the period in which the Participants’ payroll deductions are remitted to the Trustee.

Payment of Benefits: Benefits are recorded when paid.

Expenses: Certain administrative expenses of the Plan are paid by the Plan Sponsors.

Use of Estimates: Management has used estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities in its preparation of the financial statements in accordance with accounting principles generally accepted in the United States of America. Actual results experienced by the Plan may differ from those estimates.

 

3. Excess Contributions Payable:

During 2005, due to a nondiscrimination provision to the plan, certain Participants’ contributed amounts that were in excess of allowable qualified contributions. The excess contribution payable amounted to $76,228 and is reflected as a Plan liability as of December 31, 2005. Such amounts were refunded to the respective Participants during the year ended December 31, 2006.

 

5


Table of Contents
Notes to Financial Statements (Continued)   ZOLL Medical Corporation Employee Savings Plan

 

4. Party-In-Interest Transactions:

Certain Plan investments are in mutual funds managed by Fidelity. Fidelity is the custodian of the Plan’s assets and, therefore, these transactions qualify as party-in-interest transactions. Also, Participants have invested in ZOLL Medical Corporation’s Common Stock, and therefore these transactions also qualify as party-in-interest transactions.

 

5. Plan Termination:

While it is the intention of the Plan Sponsors to continue the Plan indefinitely, the Plan Sponsors reserve the right to terminate or amend the Plan at any time, subject to the provisions of ERISA. In the event of termination, the accounts of all Participants shall become fully vested and plan assets shall be distributed in accordance with the terms of the Plan.

 

6. Tax Status:

The Plan adopted a standardized prototype plan sponsored by Fidelity. The prototype plan sponsor received a favorable opinion letter, dated October 9, 2003, which stated that the Plan prototype is designed in accordance with Section 401(a) of the Internal Revenue Code. The Plan has been amended since receiving the determination letter; however, the Plan Sponsors believe that the Plan and the related trust are currently designed and being operated in compliance with the applicable provisions of the Internal Revenue Code. Therefore, the Plan Sponsors are of the opinion that the Plan and the related trust were tax exempt as of and for the year ended December 31, 2006.

 

6


Table of Contents
Notes to Financial Statements (Continued)   ZOLL Medical Corporation Employee Savings Plan

 

7. Investments:

Investments, all of which are participant-directed, which represent 5% or more of the Plan’s net assets as of December 31, 2006 and 2005, are summarized as follows:

 

     2006    2005

Allianz CCM Capital Appreciation Fund

   $ 3,910,390   

Neuberger Berman Genesis Fund

     3,736,341   

American Century Equity Growth Fund

     3,528,554   

Fidelity Advisor Diversified International Fund, Class A

     2,330,784   

Fidelity Advisor Prime Fund

     2,170,157   

Allianz NFJ Dividend Value Fund

     1,573,364   

Fidelity Advisor Intermediate Bond Fund, Class A

     1,570,881   

ZOLL Medical Corporation Common Stock

     1,477,840   

Fidelity Advisor Mid Cap Fund

     1,437,075   

Fidelity Advisor Balanced Fund, Class A

     1,430,703   

Fidelity Advisor Equity Growth Fund, Class T

      $ 4,012,417

Neuberger Berman Genesis Fund

        3,550,604

Fidelity Advisor Dividend Growth Fund, Class T

        3,106,118

Fidelity Advisor Prime Fund

        1,649,683

Fidelity Advisor Intermediate Bond Fund, Class T

        1,431,167

Fidelity Advisor Overseas Fund, Class T

        1,204,131

Fidelity Advisor Balanced Fund, Class T

        1,174,015
During the year ended December 31, 2006, the Plan’s investments (including gains and losses on investments bought and sold, as well as held during the year) appreciated as follows:

Mutual Funds

      $ 2,009,439

ZOLL Medical Common Stock

        1,130,807
         
      $ 3,140,246
         

Investments in ZOLL Medical Corporation Common Stock (held in a unitized stock fund created by trustee) held by the Plan at December 31, 2006 and 2005, consists of 25,375 and 32,755 shares, respectively.

 

7


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Notes to Financial Statements (Continued)   ZOLL Medical Corporation Employee Savings Plan

 

8. Reconciliation of Financial Statements to Form 5500:

The following is a reconciliation of the net increase in net assets available for plan benefits per the financial statements to Form 5500 for the year ended December 31, 2006:

 

Net Increase in Net Assets Available for Plan Benefits, Per Financial Statements

   $ 7,308,212

Less: Prior Year Excess Contributions Payable

     76,228
      

Net Increase in Net Assets Available for Plan Benefits, Per Form 5500

   $ 7,231,984
      

As of December 31, 2005, excess contributions payable, in the amount of $76,228, have been excluded from the Plan’s net asset available for plan benefits and included in the Plan’s Form 5500.

The following is a reconciliation of net assets available for plan benefits per the financial statements to Form 5500 as of December 31, 2005:

 

Net Assets Available for Plan Benefits, Per Financial Statements

   $ 21,297,390

Excess Contributions Payable

     76,228
      

Net Assets Available for Plan Benefits, Per Form 5500

   $ 21,373,618
      

 

8


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Schedule H, Line 4i Supplemental Schedule of Assets   ZOLL Medical Corporation Employee Savings Plan
Held for Investment Purposes at End of Year   EIN #04-2711626 / Plan #001

Assets held by the Plan for investment purposes as of December 31, 2006, are summarized as follows:

 

(a)

   (b)
Identity of Issue,
Borrower, Lessor or
Similar Party
  

(c)
Description of Investment, Including Maturity Date,
Rate of Interest, Collateral, Par or Maturity Value

   (d)
Cost
  (e)
Current
Value
   Allianz    Allianz CCM Capital Appreciation Fund    **   $ 3,910,390
   Neuberger Berman    Neuberger Berman Genesis Fund    **     3,736,341
   American Century    American Century Equity Growth Fund    **     3,528,554
*    Fidelity    Fidelity Advisor Diversified International Fund, Class A    **     2,330,784
*    Fidelity    Fidelity Advisor Prime Fund    **     2,170,157
   Allianz    Allianz NFJ Dividend Value Fund    **     1,573,364
*    Fidelity    Fidelity Advisor Intermediate Bond Fund, Class A    **     1,570,881
*    ZOLL    ZOLL Medical Corporation Common Stock    **     1,477,840
*    Fidelity    Fidelity Advisor Mid Cap Fund    **     1,437,075
*    Fidelity    Fidelity Advisor Balanced Fund, Class A    **     1,430,703
   Dreyfus    Dreyfus S&P 500 Index Fund    **     1,123,938
*    Fidelity    Fidelity Advisor Freedom 2020 Fund, Class A    **     600,748
*    Brown Brothers    BBH Real Return Fund    **     497,332
*    Fidelity    Fidelity Advisors Freedom 2030 Fund, Class A    **     323,244
*    Fidelity    Fidelity Advisors Freedom 2040 Fund, Class A    **     270,555
   Columbia    Columbia Mid Cap Value Fund, Class A    **     260,941
*    Fidelity    Fidelity Advisor New Insights Fund, Class A    **     207,966
*    Fidelity    Fidelity Advisor Freedom 2010 Fund, Class A    **     151,915
*    Fidelity    Fidelity Advisor Freedom 2025 Fund, Class A    **     143,989
*    Fidelity    Fidelity Advisor Freedom 2035 Fund, Class A    **     87,393
*    Fidelity    Inst. Cash Portfolio Money Market Fund    **     52,096
*    Fidelity    Fidelity Advisor Freedom 2015 Fund, Class A    **     47,183
*    Fidelity    Fidelity Advisor Freedom 2050 Fund, Class A    **     13,077
*    Fidelity    Fidelity Advisor Freedom 2045 Fund, Class A    **     1,405
*    Fidelity    Fidelity Advisor Freedom Income Fund, Class A    **     45
*    Participants    Loans to Participants with interest rates ranging from 5.0% to 9.25%, maturing through 2016    **     622,297
              
           $ 27,570,213
              

 

* Represents a party-in-interest to the Plan.

 

** Cost information may be omitted for participant-directed transactions under an individual account plan.

 

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Consent of Independent Registered Public Accounting Firm

We hereby consent to the incorporation by reference in the Registration Statements No. 333-38048 and 333-137245 on Form S-8 of ZOLL Medical Corporation of our report dated June 13, 2007 relating to the financial statements and supplemental schedule of the ZOLL Medical Corporation Employee Savings Plan, which appears in this Form 11-K.

/s/ Moody, Famiglietti & Andronico, LLP

Moody, Famiglietti & Andronico, LLP

Tewksbury, Massachusetts

June 13, 2007

 

10

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